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  1. #1
    Join Date
    Sep 2006
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    128

    Default Rental Property Ownership Florida

    I am looking into buying foreclosure homes to turn into rental income in Florida. Would it be better to buy under a corporation or LLC rather than in my personal name?

  2. #2
    Join Date
    Mar 2008
    Posts
    1,995

    Default Re: Rental Property Ownership Florida

    Quote Quoting puppetjr
    View Post
    I am looking into buying foreclosure homes to turn into rental income in Florida. Would it be better to buy under a corporation or LLC rather than in my personal name?
    I don't know if you plan to obtain mortgages on them, and I have heard that many banks and mortgage companies shy away from giving mortgages to LLC's, making it more difficult to obtain, so often people buy it as individuals and then deed it over to an LLC later on.

    I also think liability protection for LLC's where the owner provides services are overblown. All people was to do is sue the LLC and the owner themselves for negligence. What I do is save all the extra expenses and legal fees, and simply buy additional umbrella insurance.

    When I purchase properties in the better neighborhoods, people assume that I'll be moving in. Some neighbors become hostile if they find out a speculator under an LLC is buying it.

    Lastly, here in NYC, two years ago, they want to add a 25% tax surcharge for investor properties assuming most are held in LLC's. Turned out to be wrong, and because they couldn't figure out a better way to identify investor properties, the idea was dropped.

    Because of this, I don't want my property tagged as investor if this wonderful idea ever comes up again. Also, if I buy "umbrella insurance" for my homes and car, currently my rentals are included, but not if it's under an LLC, where I have to obtain a separate policy at much higher commercial rates.

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